Making long-term decisions can be difficult in publicly traded companies where sales and profit evaluations indicate the capability of management via stock values.

Question

Quizplus · Accepted Answer

Publicly traded companies are constantly evaluated by their sales and profit performance, which can influence their stock values. As a result, management may feel pressure to focus on short-term gains rather than making decisions for the long-term health and sustainability of the company. This can make it difficult to make long-term decisions that may not have an immediate impact on the company's financial performance.

Making Long-Term Decisions Can Be Difficult in Publicly Traded Companies